Trends in Oil and Gas Financing


An oil and gas revolution is occurring in the U.S., transforming the U.S. economy. An enormous amount of capital will be required to develop and produce shale oil and gas, and to develop the necessary infrastructure of pipelines, storage facilities, processing plants, refineries and related facilities. IHS in October 2012 estimated that cumulative capital expenditures on unconventional oil and gas are expected to exceed $5.1 trillion by 2035 (an average of approximately $200 billion per year).

To satisfy these needs, capital is flowing into the oil and gas industry from both traditional and nontraditional sources. New types of partnerships and joint ventures are being formed and innovative financing structures are emerging. Structures and covenants that gained popularity in the 2007-2008 credit boom are reappearing. Here’s a look at some of them.

Excerpted from "Trends in Oil and Gas Financing," in Here's the Money: Capital Formation 2013, a supplement to Oil and Gas Investor, June 2013. To read the full article, click on the PDF linked below.

PDF - Trends-in-Oil-and-Gas-Financing.pdf

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